Information for the current month for Process 3 is shown below. $\begin{array}{lrl}
&\text { Direct Materials }&\text { Conversion Costs }\
\text { Beginning work in process } & \$ 3,600 & \$ 930 \
\text { Current month's costs } & 55,800 & 48,204\
\text {Equivalent units based on the FIFO}\
\text {costing method}&62,000&61,800
\end{array}$
Units completed-60,000
Units in ending work in process-6,000
Direct materials are added at the beginning of the process.Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 50 percent complete.The cost of ending work in process inventory totaled

Question

Information for the current month for Process 3 is shown below. $\begin{array}{lrl}
&\text { Direct Materials }&\text { Conversion Costs }\
\text { Beginning work in process } & \$ 3,600 & \$ 930 \
\text { Current month's costs } & 55,800 & 48,204\
\text {Equivalent units based on the FIFO}\
\text {costing method}&62,000&61,800
\end{array}$ 
Units completed-60,000
Units in ending work in process-6,000
Direct materials are added at the beginning of the process.Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 50 percent complete.The cost of ending work in process inventory totaled

Quizplus · Accepted Answer

The cost of ending work in process inventory is calculated by multiplying the equivalent units of ending inventory by the cost per equivalent unit. For direct materials, all units are complete, so 6,000 units x ($55,800/62,000) = $5,400. For conversion costs, 6,000 units x 50% x ($48,204/61,800) = $2,340. Total cost = $5,400 + $2,340 = $7,740.

Information for the Current Month for Process 3 Is Shown